Skip to main content

tv   MONEY With Melissa Francis  FOX Business  May 22, 2013 5:00pm-6:01pm EDT

5:00 pm
residential high-rise building in stoke hole many is getting a hairy addition. it appears to be wearing giant wig. but the hairs are thin finers that provide energy for the building. liz: not bad. "money" with melissa francis is next. have a good night. melissa: i'm melissa francis and here's what's money tonight. silence is golden, well, unless you're lois lerner, the woman at the heart of the irs scandal refuses to speak up in congress. why should i pay my taxes, that's what i'm wondering? tesla is like the coolest kid in school right now but we're grabbing a bucket of cold water to throw on that love-fest. who made money do? the company who is helping bring the beginning of the end of cancer. keep watching to find out who that is. even when they say it's not, it is always about money. >> we have you authenticate
5:01 pm
the simply the questions and answers previously given to the inspector general? >> i don't know what that is. i would have to look at it. i've decided to follow my counsel's advice and not testify or answer any of the questions today. i will not answer any questions or testify about the subject matter of the committee's meeting. >> stand here and answer our questions? [applause] melissa: that was day three of the irs hearings. clearly, obviously very productive. even when the irs official who was in charge of the unit responsible for targeting the scandal not answering any questions? are we going to see a revolt with people not paying their taxes? why should we? here to weigh in on the latest phil swagel, former assistant secretary of economic policy at treasury department and noah bushnell, on deck capital.
5:02 pm
welcome to both of you. noah, let, why should i pay my taxes if these guys are not following rules? i say that kind of joking and kind of not. they're not following the rules? >> melissa we have to have people continue to pay their taxes. we can't let the dish run we have to focus on real issue which confidence in the irs has been shaken. melissa: let me stop you right there. i have heard that saying over and over again in the past week. who was ever confident in the irs? i mean i never felt good about them. do you think the average american person, phillip, let me ask you, the average person out there, do they feel confident with the irs? >> you know, i think people resent the irs. they resent paying taxes but they're confident in the sense when we send the check it goes to the right place. we're confident that our neighbors are paying their taxes. to me that the confidence. melissa: you are? you are confident that the neighbors are paying their taxes? that is one of the biggest
5:03 pm
issues when we talked about apple yesterday. a lot of people think corporate america isn't paying their taxes. so i dispute that point. >> you know, apple is paying taxes it has to pay by law and following the law. they have got really good attorneys and really good accountants. as far as anyone can tell they're following the law. so i think it is hard to blame them. but by the same token if my neighbors have better accountant than i do, you know, credit to them. but i'm pretty confident that people in the u.s., on the whole, not every single person, pay their taxes. that's what i'm worried that has been shaken by this irs scandal. melissa: especially, noah, when we hear about irs employees using their credit card, their corporate credit card for personal purchases. which of course when you look at the list which we'll put up on the screen, this is my money, that i have worked very hard to earn and you have this person's name, i'm sure i'm not saying her name right, using government credit card for years on
5:04 pm, shopping for a chocolate fondue fountain, bollywood movies, pampers, harlequin romance novels. omaha stakes, apple bottom skinny jeans. that is an oxymoron. >> that is irs has one had you,000 employees and actions of them employee are regretable. we deal with small business owners in our company and they spend four weeks every year preparing their taxes. melissa: right. >> i think the real issue and shame of all this, tax reform which is so badly-needed might get postponed or we get distracted from it while the whole irs thing blows through. melissa: phil, do you think that is the case? maybe this speeds up tax reform. i was thinking that is one good thing that comes out of this that it really draws attention to the fact that the system is very much broken and needs to be changed immediately? >> yeah. i think it does highlight it. people knew it but this is an illustration. with the apple tax situation that you mentioned i think
5:05 pm
it is the same thing. you know unfortunately i think tax reform is on a pretty slow train here but, you know, hard to see it going forward this year. melissa: noah, we had a lot of instances of people that were testifying today just being really cute. i mean was deputy treasury secretary neil wolin. if you saw him today as they got up and i think we have video of this, if we go ahead and play this. if you saw as he got up and everybody was supposed to be sworn in at the very beginning he took a nice sized step, there he is, stepping out of the frame, so when they took the key picture of those three, getting sworn in, which you know will be on the front page of every paper tomorrow, he wanted to make sure he wasn't in it. lois lerner, pleading the fifth today, but making a statement before it even started, i did nothing wrong. i did nothing illegal. i followed every rule out there. by the way i'm not going to answer any questions. the american public did the very thing that makes us all feel like they're a bunch of jokers. >> it's really interesting
5:06 pm
that she took that course because she sort of didn't totally plead the fifth and didn't totally give a explanation of her behavior. she tooked middle road and did a little bit of each. melissa: can you do that. >> i don't think you can. we saw on your other station of fox news recently a judge was testifying saying it actually doesn't work in the first part of her statement nullifyfys the effect of the her fifth amendment and she didn't follow her legal melissa: phillip, this takes away from the original problem here with the irs. if you look at some of the things they did in the original scandal. specifically asking a question of the coalition for life of iowa, quote, please detail the contents of the members of your organization's prayers. is that an appropriate question from the irs? >> yeah, to me that is exactly the scandal. it is wildly inappropriate. and something that is outrageous you say i did nothing wrong.
5:07 pm
manifestly wrong, what you just said is the tip of the iceberg. she san kay i did nothing criminal and let the court system decide that to say there was nothing wrong, isy that was outrageous. melissa: noah, where do we go from here? >> we have to get through this thing. two alternatives, right. either incompetence and mismanagement, this happened by chance and what have you, or it was a targeted thing and we need to figure out which one of those it was and people need to be held accountable for it. melissa: yeah. >> i come back to the issue of tax reform. we need to sort of move beyond this and get to the core issue for consumers and business own years maybe that could be the good coming out of all this. i heard other people say this really stalls tax reform but i think it maybe spurs it. it brings to light how disasterous the system is and that would be good for our money, for corporate america. >> that's right. melissa: if we could see real reform here. thanks to both of you. >> thank you. melissa: so it is our money question of the day, given what is going on with the irs scandals should you have to pay your taxes? a lot of you were really fired up
5:08 pm
over this one. i have to laugh on this. no. tv authors should pay them for us. ron, i want bill o'reilly should pay my taxes too. like us on or follow me on twitter @melissaafrancis. irs officials kept congress up in arms. ben bernanke sent investors charging for the exits. in prepared testimony to congress, bernanke said it was too soon to roll back the fed's stimulus measures. the dow soared 154 points on the news, but then during the q&a, did you see this, bernanke said the fed may slow them down after one of its next meetings. the fed minutes showed a similar outlook from that and that sparked a intraday swing of 234 points. it was the dow wildest day in three months. blue-chips closed down, buying yields rocketing higher.
5:09 pm
a lot of people are wondering if this was the reversal we've been waiting for sparkedded by the fed. up next, everyone is cheering tesla and meteoric rise on its stock and paying a government loan nine years early. we're a little worried on "money". we'll tell you why. is sac capital steve cohen the new john gotti? prosecutors may go after his company with a statute used to take down the mafia. we have two legal eagles here to weigh in. more "money" coming up. ♪ .
5:10 pm
5:11 pm
5:12 pm
5:13 pm
melissa: tesla motors is riding a huge high these days. reviews are great. the stock is surging and now it has repaid a $465 million department of energy loan nine years early. soothis the best company ever? or am i right to an just a little bit worried that this is short squeeze? let's to our street panel. for the bears we have scott martin with united advisors. for the bulls, michael farkus. welcome to both of you. michael, i want you to make -pyour case first. a pretty meteoric rise in a short time. do you feel good about it?
5:14 pm
>> yes. we believe there's a lot of potential and still a lot of upside to the stock of the company. melissa: i was hoping you had more after the yes. why do you believe that? >> they have a great product. ttey have great management and more importantly people want to buy that product. melissa: okay. that was not even remotely convincing. scott, what do you think?. >> i was going to say i was convinced, melissa. it's tough, it's tough to be the bear here. melissa: why? >> i will, i got to do my best lois lerner. you're right, melissa, everybody loves this company and that is kind of scary but it is also something that could drive up the price. my take is, the is following i like some of the american cars a little better based on evaluation, based on exposure and say emerging markets, china. certainly europe where tesla isn't yet. lo and behold for the government to final i invest in something that worked, i guess they were due. melissa: michael, give you one more chance here. here is one of the points. tesla got $68 million or 12%
5:15 pm
of its revenue from california zero emission tax credits in the last quarter. so that big profit that they made, a lot of it came from trading these tax credits. that is one-time thing and that's a huge percentage of their profit. why doesn't that scare you? >> because bottom line, they have great more people are going to be purchasing. they have more product like the model x. elan just mentioned they will have a 3 series competitor. the more product they put out on the market more sales they will have, and more they are able to earn the valuation that they have. melissa: scott, i'm worried that the stock has jumped 74% since may 8th. to me that kind of move, feels like a short squeeze. i mean there were a lot of people out there that didn't expect them to have this kind of a quarter and had shorted the stock. look at the slope of that curve. isn't that what that looks like to you? >> it is completely unnatural. when stocks go parabolic you have to watch out. i think your point is well-taken. a short squeeze certainly seems to be in order here. so what will happen? people have to buy the stock to cover.
5:16 pm
that gives it kind of an unofficial or artificial float. listen, here's another thing. melissa: yeah. >> michael mentioned something important. people like the car, right? if you look at some reviews. the ford focus electric there are other things that the ford has that the tesla doesn't. it reviewed out questionably better than the tesla did. so i think there are things out there with regards to competition that tesla's got to be a little bit worried about. melissa: yeah, scott, especially because they have one car right now. that is very expensive. you know, i wonder how big the market for that particular car is. you know, i mean i know that they're rolling out the charging stations. that was one of their big announcements, either today or earlier this week. they're making a lot of the right moves. but i wonder if they're just, i mean, could more competition come in and just crowd that out? >> yes. and that's the whole thing, melissa. let's talk about the competition. what brand recognition does tesla have other than these really cool headlines in the last couple months? not really all that much. i mean if you look at ford
5:17 pm
and chrysler and some of the other guys out there, i know they're killing audi and bmw and lexus but those are the brand recognition names. at some point the consumer which is overly fickle and very smart, great point about the price of the tesla versus some of its competitors being higher, the competitors will step up because that's the brand that people know. melissa: and scott, the other thing i worry about, this is really the elon musk effect. you say how much brand recognition do they really have. i think they have him. he has become such a famous guy. we've seen the same thing happen with solar -- >> apple also had jobs. melissa: that's true. >> it isn't a one-man thing sometimes. elon has shown over and over again he successfully built businesses. what he has done by paying off the government loans has never happened before. havvng a car the first model of, build ever to come out with 99 out of 100 from "consumer reports", it doesn't exist. you bet it with winners and sell short losers. elon musk is a winner you
5:18 pm
want to bet with. melissa: other than paypal, what has he done that has been a huge success. spacex is very cool but i don't know it is making a ton of money. >> a private individual who funded an operation that sends rockets into space. melissa: just means he has a lot of money. >> solar city. not only about money. about picking teams together, bringing them together, having a goal and accomplishing those goals. he has shown time after time he is able to build these teams and succeed. melissa: that is good point. we'll leave it there. guys, thanks for coming on. >> thank you. melissa: coming up on "money," are the feds comparing steve cohen and sac capital to this guy? the organized crime law that convicted john gotti could be used against cohen. the details are next. plus what the state of the keystone xl pipeline? we have the top congressman behind a crucial vote tomorrow. plus the former second irat that of energy stay right there. do you ever have too much
5:19 pm
money or too much oil? ♪ welcome to the new buffalo... where new york state is investing one billion dollars to attract and grow business. where companies like geico are investing technology & finance. welcome to the state where cutting taxes for business... is our busines welcome to t new buffalo. welcome to the new buffa. welcome to the new bfalo. new york state is throwing out k to give your business a new ee, the ed you can only get in new york state. to grow our start your business, visit thenewny.c [ female announcer ] some peod cod never happen to them. and that their heowners insurance protects them. [ thunder crashes ] it doesn't. stop pretending. only flood insurance covers floods.
5:20 pm
♪ visit to learn your risk.
5:21 pm
it's delicious. so now we've turned her toffee into a business. my gl was to take an idea and make it happen. i'm janet lo and i formed my toffee company through legalzoom. never really thought i would make money doing what i love. [ robert ] we created legalzoom to help people
5:22 pm
start their business and launch their dreams. go to today and make your busiss dream a reality. at we put the law on your side.
5:23 pm
♪ . melissa: no matter what time it is money is always on the move and here's who made money today. anyone that owns bristol-myers squibb. citigroup says the company is helping bring, quote the beginning of the end of cancer. it is huge potential from a new cancer treatment. the drug may win regulatory approval early as next year. news sent bristol-myers shares jumping 5%. hitting a record high. good for them. also making money, investors in saks fifth avenue. the luxury retailer reportedly considering a possible sale. kkr the private equity giant possibly looking to to do a deal can neiman marcus. delightful. the news sent saks shares up
5:24 pm
13%, to an all-time high. spending money. a die-hard fan of "harry potter". rare first edition of "harry potter" and the philosopher stone went up for auction at sotheby's. the unidentified buyer paid $230,000 for the book. only 500 copies exist. wow. another new twist for the feds to take down hedge fund leader steve cohaen from sac capital. they are treatings him like the mob. they may use the rico statute used against none other than john gotti to bust up the mafia. could the whole thing blow up from prosecutors faces? here is former federal prosecutor doug burns and securities attorney richard roth. great to have you both on the show. doug, what do you think of the tactic? will it work? >> that is interesting you need to look at whole history of the case. matthew martoma was busted arrested and everybody said
5:25 pm
if he flips and cooperate maybe they take down a case against steve cohen. from my lens. i don't think that happened. i don't they have been able to do that. invocation of rico is a huge sledgehammer that is used against organized crime, mobsters, drug gangs. i think they may have a problem with it. melissa: do you think it will work or wouldn't work? >> no, i think it is overreaching. federal government went after enron and appeal overturning that conviction. they're ttying and steve cohen is target and doing anything they can to get steve cohen. the statute is running out they have until july 20th of 2013 two months away to go after steve cohen. they're trying it increase pressure to get someone to turn. melissa: speaking of pressure, i don't understand why matthew martoma is not flipped on him. he is looking at lot of jail time. do they have al solid case? unless he is physically scared of steve cohen i don't understand. >> that is great point.
5:26 pm
you would think he would cooperate but apparently he is not. other thing i want to say real quick they're thinking of using rico, i like to say what richard said about, against the entity, against the hedge fun and not the individuals. that turns into a situation where they can extract a lot of money, $500 million, just using that hypothetically and, it's good obviously for the u.s. treasury. and --. melissa: would be more than that. >> in terms of cohen. that's a possibility. melissa: is that an effective strategy you think? >> i think it is a strategy. i don't think it is effective. back to martoma. in martoma's indictment it mentions that he had a conversation with senior person at sac capital for 20 minutes. remember he meets with a doctor allegedly. the doctor tells them wyeth and elan are not good stocks. he then has a 20-minute conversation we believe with steve cohen. thereafter they sell the stock and profit $276 million. melissa: yeah. >> so what they're trying to do to get martoma to say,
5:27 pm
mr. martoma tell me about the conversation you had with steve cohen. isn't it in fact true that steve cohen told you to dump the stock? martoma hasn't done that. melissa: there is one main reason he might not be flipping on steve cohen. >> which is? melissa: maybe steve cohen didn't do anything. >> that is possible. what happened they were sitting around at a joint meet and they were deciding what to do with those securities you mentioned having to do with the alzheimer's drug and they turn and around and went with mart tomema. said sort of like code, he is closest to the situation. let's follow him. and that right there is the crux. working off his point, if they get him to come in and say, yeah, i was closest to the situation because i had specific inside information. i spoke to steve cohen. that's what they need. that's what they don't havep a parently. >> as doug said the bottom line marm toma probably, that probably did not happen. martoma may have had a conversation with cohen. he may not be in a position to flip. or to hurt cohen. that may be a problem.
5:28 pm
melissa: he would have done it already if he could but he can't unless he makes stuff up. >> absolutely. melissa: if he faces jail time and could get out of it by talking about steve cohen at this point you think he would have done that. >> correct. i have the deadline july 20th and federal government. the whaa the federal government decided to do is do a blitzkrieg. basically subpoenaing everyone including cohen. melissa: is that where the rico comes in? they're throwing everything at the wall? >> yes. sorry to interrupt you the reason because rico came in no one could understand why they would step steve cohen. you don't generally subpoena the target. melissa: right. >> they're subpoenaing steve cohen. >> i agree. >> they're going after someone other than steve cohen to provide pressure is. sac would a enterprise essentially engaged in raketeering. melissa: does that satisfy them? would want to break up the company, put steve in jail. they would not be able to do% that? they get a lot of money out of because i guess they like that. >> that is good point. put the entity out of the business. take in 7, 800 million.
5:29 pm
melissa: costart another fund? >> he probably could. the fact of the matter is a lot of times sadly, you know, you don't use the word extortion. that is pretty extreme but when the federal government says we'll use the raketeering law against you very often see big monetary settlement. we'll see. melissa: thanks for breaking that down. we appreciate it. next on "money," the next vote on the keystone pipeline is tonight. the congressman leading the charge and former secretary -- energy secretary spencer abraham will join us next. everything you thought you knew about the oil and gas industry. john stossel is here with a report that debunks the biggest myth. i can't wait for that. "piles of money" coming up. ♪ . (announcer) scottrade knows our clients trade and invtheiown way. with scottrade's smart text, i can quickly understand mcharts, and spen andmore time trading.
5:30 pm
their r quick trade bar lets my account follow me online understand mcharts, and spen aso i can react in real-time. plus, my local scottrade office is there to help. because they knonow i don't trae like everybody. i trade like me. i'm with scottrade. (announc) scottrade. voted "best investment services company."
5:31 pm
welwhere new york state is... investing one billion dollars to attract and grow business. where companies like geico are investing in tecology & finance. weome to the state where cuttintaxes for business... is our business. welcome to theew buffalo. welcome to the new bfalo. welcome to the new buffalo. new york state is throwing out the old rule book to give your business a new edge, the edge you can only get in new york state. to grow our start your business, visit
5:32 pm
are you still sleeping? just wanted to check and make sure tt we were on sedule.
5:33 pm
the first technology of its kind... mom and dad, i have great news. is now providing answers families need. siemens. ansrs. ♪. . melissa: house republicans are sick and tired of waiting for the president to green light the xl pipeline. later tonight the house is votings on a bill that would eliminate the presidential approval process and get the ball rolling on final pipeline construction. even if it passes the president said he will veto it. why are lawmakers wasting time pushing for a bill destined to be dead on arrival? what is the future of the keystone pipeline? doc hastings, chairman of house natural resources committee.
5:34 pm
thanks for being here. why do it if the president has promised to veto it? >> we're here to try to advance america's agenda of creating jobs. and energy jobs are good-paying jobs. there is no question about that but there is national security aspect of having our energy come from north america. so those two things intertwine very well. now there's no question that the keystone pipeline is popular with americans. across the political aisle, i mean, organized labor, for example is very much in favor of it. melissa: congressman, you have us on all these points. we're right there with you. >> sure. melissa: we're worried about the fact that the president has pledged it veto this on arrival. so why try and push it through this way? is there more, is there more effective way? >> well, no, the president can end this right now by agreeing to build the keystone pipeline. he could do it. it is within his hands. the fact is we waited nearly five years and he hasn't done anything. so this a means by which to
5:35 pm
put political pressure on him, no question about it. melissa: so you think it adds pressure, even though he has promised to veto it? you think if you get it that far it would pressure him. but people say it will not make it through the senate either. >> there have been votes in the senate and there has been as many as 62 senators that have voted in favor of keystone pipelines. be beaten by 60 can 62 are already on record in the past being in favor of that. let's see if they really are about american jobs. i mean the president talks about this all the time. but this is one right at his fingertips. we're trying to apply the pressure so we can build the keystone pipeline and do what we said the keystone pipeline would do, create more jobs and make us energy secure. melissa: opponents say it is a way for canada to export its oil in another country. what do you think about that. >> it may. oil, for goodness sakes,
5:36 pm
crude oil is a worldwide commodity product. keep in mind, the pipeline, the bakken, everything happening up in montana and in north dakota, they can tap into this pipeline. so we can now get american crude into this pipeline. now, if it goes overseas, you know, i'm a free trader. that's fine. but for goodness sakes i think, a lot of it will enn up here in the united states. the volatility in the other parts of the world does not establish, in my point of view, certainty to having, you know, a product that you can refine and put on the market. so while i admit, crude oil is a worldwide product, having it here in north america and more likely will go to north america. melissa: how do you think you win over democrats who are opposed to it? it is not all of them. and a lot of people understand what this would mean for consumers, for jobs, for our economy. how do you think you win over the people who are on the fence? >> well, i, listen, i think there are a lot of democrats
5:37 pm
that would probably be with this if not political pressure coming from the environmental left. of course trying to support their president. i give a lot of credit to the democrats that have supported, efforts come out of my committee in the past. as far as offshore drilling and onshore drilling. so we will have bipartisan support on this. it is just too bad that, you know, political posturing on the other side makes it tough for a lot of people to come on board that probably would be there. melissa: just between you and me, is there something you could trade? >> well, you know, there comes a time between you and me, melissa, that you have to do the right thing. and i think the right thing to do here is to build the keystone pipeline. melissa: you're a good sport. congressman, thanks for coming on. >> my pleasure. melissa: spencer abraham is the former energy secretary under president george w. bush. let's bring him in for some reaction on what we just talked about. mr. secretary. great to have you. thanks for coming on. >> thanks, melissa. good to be with you. melissa: how do you feel about the hopes for this
5:38 pm
pipeline given what you heard and what you know? >> i find it sort of mind-boggling we've gone this long without a decision by the administration. the only thing they're decisive about is vetoing legislation that would move the pipeline forward. and so to me there is a lot of excuse-making going on at 1600 pennsylvania avenue. i think if they don't want to do it, say it, announce they're not going to support the pipeline, and let people know this. or, if they're for it, then, you know, be decisive. matter o. it is a matter of national security. it is a matter of economic security. these are the kind of issues we need leadership in washington. melissa: yeah. >> not passivity. melissa: absolutely. i mean, you're a guy inside and out.nows energy i think with what's going on with shale and fracking and this pipeline and even with americans using less fuel than ever before, that this could be our chance to really rebuild the economy. that the same way the internet came into play and
5:39 pm
turned around the economy in the 90 east, that energy could be our thing right now. we were so long dependent on others for energy. is the pipeline a key part of that and do you think that real theory or i am too hopeful? >> no. i think you said it better than i could and i think the pipeline is a part of it. not only do you need to find and discover and produce more energy you have to have the infrastructure that supports the energy that you're producing. having more pipelines and the ability to move product across the continent is an important ingredient. one of the points that i think you also ought to just focus on as your thing about this and you kind of alluded to it before is this. if this doesn't happen, this oil will not sit in the ground in canada. melissa: right. >> it will go somewhere else. there will be a pipeline to the pacific ocean and this oil will be used someplace else on the planet. so, it's a question whether the u.s. will be a part of it and benefit or whether or
5:40 pm
not we'll sacrifice energy security for the sake, really of timidty. melissa: yeah. i mean you're somebody that knows the inner-workings of the government and you heard me ask the congressman what could be traded away to make this happen. of course he couldn't really answer that question but what do you think? how do you get a deal on this done? do you think the president is deadset against it and will stand in its way or is there a way to make the deal that gives him political cover maybe with environmentalists and it is not his fault that it goes through but still goes through? >> you know, it is a shocking situation that we would be in a position to enhance the energy security and the economy of the united states and we have to sit here and try to speculate about trying to get cover. melissa: i know. how could we do it? >> he has been reelected. he has no more campaigns left. what does he need political cover for? at this point he should do the right thing for the country and this is the right thing. melissa: does that mean you think he is deadset against it and he will not do it and this will never happen?
5:41 pm
>> that is my assumption because i don't know at this stage what's left in terms of rationale for deciding. the facts are in. they have been debated endlessly. he has got his, you know, command of the information as much as he is going to get. he should decide. and let us know. he is either for or ends hanesing america's energy security. i understand that that's fine. he doesn't want people to know that is his position but sooner or later people will know when he doesn't act. >> pipeline is key part. if he stand in the way this will really be something. mr. secretary, thanks so much for coming on. >> thanks, melissa. good to be with you. melissa: coming up the summer driving season officially kicks off this memorial day weekend. everything you think you know about the oil and gas business, probably wrong. john stossel is here to bust the biggest myths. at the end of the day it is all about money. ♪ .
5:42 pm
in today's markets, a lot . with fidelity's guaranteed one-second trade execution, we route your order to up to 7market centers to look r the best possiblprice -- maybe even better than you expected. it's all part of our goal to execute your trade one second. m rrick chan of fidelity investments. our one-second trade execution is one more innovati reason serious investors are oosi fidelity. now get 200 free trades when you o open an account. ...amelia... neil and buzz: foteaching us that you can't create the future... by clinging to the past. anwith that: you're htory. instead of looking behind... 8080 thousand of us investing billions... in everything from the best experiences below...
5:43 pm
to the finest comforts above. we're not sily saluting history... we're making it. at bny mellon, our business is investments. managing them, moving them, mang them work. we oversee 20% of the world's financial assets. and that gives us scale and insight no one else has. investment management combined with investment seicing. bringing the power of investments to people's lives. invested in the world. bny llon
5:44 pm
5:45 pm
>> where does most of our oil come from? >> the middle east and the gulf of mexico? >> when we buy gasoline do we help fund terrorism? >> yes of course. >> it pumps money into areas
5:46 pm
you don't necessarily want the money to go. melissa: interesting. all right, forget urban legends. what you just heard are gas myths. john stossel is here to drill down what may be the biggest lies. welcome back to the show. >> thank you. melissa: this is a subject that is near andddear to my heart pause i covered energy for years and years. i love you're debunking these myths. let's start with this. why does gas cost so much. >> it is not so much. stop whining about it. we focus because the prices are posted. thinkkabout it. that is 4 bucks a gallon. think what they have to do to bring stuff. sink drills seven miles in the earth. go sideways to suck it out of the earth. put it in pipelines that go for miles in ships that cost millions across the ocean. refining intoothree different types of gasoline. put it in tankers that cost 100,000 dollars each. send to gas station where we have to the expensive stuff so we don't blow ourselves up at the pump. per ounce it costs less than
5:47 pm
bottled water they sell at these gas stations. so i say, when i go to the gas station i thank big oil every time. melissa: you see. we're getting a good deal. what is everybody complaining about? >> right. if government produced it would cost 40 bucks a gallon. melissa: yeah. >> and there would be shortage. >> that's true. i never want to get on bill o'reilly's bad side. apparently you do. you say speculators increase the point. you dare disagree bill o'reilly. >> speculators. melissa: they're evil. >> that is nonsense. it is a very competitive market. the idea of banning speculation appeals to people because sometimes they shoot the price up. but they did that, our idiot government has done that with unyons. in 1958. melissa: really? causes unwarranted fluctuations in the price of onions. the one thing they banned from the futures market. so the price of onions fluctuates more than other prices. it has risen more than the price of gasoline.
5:48 pm
melissa: i can't believe that. i didn't know about the on yns. speculators, talk about, airlines hedge price of fuel. >> it is useful. melissa: some trader taking other side of the bet they wouldn't be able to hedge it otherwise. we did away with that one. sorry, bill. isn't premium gas much better. it costs more it must be much better. >> that's what people say. it makes no difference for 90% of the cars. melissa: what? >> if you have a portia or corvette a few cars need it. most people are getting ripped off. melissa: what does it do to the put premium gasoline in a car? it does nothing? >> nothing good. melissa: nothing? >> if you put it in a car that needs it might knock. melissa: i'm outraged. >> then you can switch back. melissa: people think most of the oil comes from the middle east. that was that question you were out asking all the folks. >> people don't know. melissa: like waufrters world. >> you have a chart where it comes from. most of it comes from the united states and canada.
5:49 pm
way down on the list, saudi arabia, mexico, venlz venz, iraq. but, and now, with fracking we're getting our own energy. melissa: we're getting our act together. this is where the u.s. gets its oil. those are the closest neighbors. oil is fungible so goes to the customer nearest by. >> true. we're not sucking all this oil from saudi arabia. melissa: oil companies oppose subsidies for green energy, right? >> they spend more on so-called green gimmicks, exxonmobil $600 million on algae research. melissa: right. >> they feed off subsidies too. melissa: they know a good deal. they know a free lunch when they see it. >> this is beyond petroleum. they were going into all the trendy stuff. melissa: although i interviewed lee raymond said. we're in the energy business. i don't really care what it is. right now it is oil because that is the thing that makes the most sense and the cheapest. if there were something else that makes more economic
5:50 pm
sense i would do that i don't love oil. i'm not focused on doing that i want to do what makes economic sense. i would switch to whatever the other thing was that created energy. it is economic. it makes sense. >> lee raymond is one of the more refreshing guys in the business. melissa: john stossel. this is fantastic. i can't wait to watch the show. you will go through all of this. >> and more. melissa: and more. john stossel, watch tonight. thanks very much. speaking of gas, this next story is anything but a myth. $2.50 for a gallon sounds like a fantasy these days. tomorrow a bj's wholesale club in baltimore is selling it for exactly that price, wow! it is all to help kick off memorial day week. the store says it wants members to have extra cash in their pocket when they hit the road. the sale starts 6:0 a.m. are you going, john stossel. >> how much gas will they burn waiting in line to get that? melissa: i was afraid you were going to say that. next on "money," a million dollar idea can come from the oddest places. what a florida woman and hat
5:51 pm
all money is getting my creative juices flowing. look at that hat? do you recognize anything on there? you can never have too much money. ♪ . we went out and asked people a simple questio how old ishe oldest person you've known? we gave people a sticker and had them show us. we learned a lot of us have known someone who's lived well into their 90s. anthat's a great thing. but even though we're living longer, one thing that hasn't changed much
5:52 pm
is the official retirement age. ♪ the question is how do you make sure you have the money you need to enjoy all of these years. ♪ your chance to rise and shine. with centurylink as your trusted technology partner, you can do just that. with our visionary cloud infrastructure, global broadband network and custom communications solutions, your busins is more reliable - sece - agile. and with responsive, dedicated support, we help you shine every day of t wk. at od, whatever business you' in, that's the business we're in. with premium service like one of the best on-time delivery
5:53 pm
cords and a low claims ratio, we do whatever it takes to make your business our business. od. helping the world ep promises. ...amelia... neil and buzz: for teaching us that you can't create the fure... and with that: you're history. instead of looking behind... delta is looking beyond.
5:54 pm
80 thousand of us investing billions... in everything from the best experices below... to the finest comforts above. we're not simply saluting history... we're making it. we're not in london, are we? no. why? apparently my debit card is. what? i know. don't worry, we have cancelled yourld cd. great. thank you. in addition to us monitoring your accounts for unusual activity, you uld alsoet up freeccount alerts. okay. [ female announcer ] at wells fargo we're working around the ock to help protect your money and financial information. here's your temporary card. welcomback. how was london? [ female announcer ] when people talk, great things happen. ♪ melissa: it is a little fun with
5:55 pm
"spare change. thanks to both of you for doing this. first up, here is my new business venture. check it out. she made me realize i need to start making "money" merchandise like this. who doesn't need this? said her favorite segment is "spare change." what other merchandise should we have? they were raising money for a good cause, they should have sold that hat to everybody that was there. >> i have a whole product line for you. heels, dresses. melissa: how about a handbag? >> you should make some "money" money. although the treasury will come after you for defacing the currency.
5:56 pm
melissa: the jail parr of that is not very good. do you have a "money" hat? you should. >> i would not be caught dead on that hat. melissa: there was a best hat contest, she won. it was a fantastic hat. i was the keynote speaker, but i was not the judge. >> i'm in favor of something up. next up, and we to boost employment without creating jobs. jobs sharon. alterolder workers would reducer hours and mentor younger
5:57 pm
workers. full social security constitution. i love sharing. melissa: i didn't read that part in the middle about how the other person would be paid less. do you want to job share? >> i would do it in a second. it just seems like this would be a very bad road to go down. >> 38% unemployment. that's bad in some spots in the government admitted we will not be able to grow the economy through should start making do with less incentive cutting deficit, cutting spending, cutting taxes to create jobs. how about cutting a lot of regulations?
5:58 pm
all of these rules make it very hard to fire them. melissa: the next new york city marijuana be. >> every day starts right here, and it is the best part of my day. i made big mistakes and i know i let a lot of people down, but also learned tough leesons. i hope i get a second chance to work for you. melissa: are you kidding me? too much to process. >> i cannot even say his name on air for fear i might get in trouble. i know he is trying to re-image and self, this is not going to work. some might support him but i think too much damage is done. >> this is new york city, one of the raciest cities in the country. americans love a good come back.
5:59 pm
can't we give him a break? who has not done that? he lied, he lied. what else is he going to do? >> look at that picture right there. melissa: it is just the pictures. i don't want him around anymore just because of the pictures. >> have you never made a mistake that you wished you could get another chance? our public officials can never make a mistake? which come back would you dislike mark #-number-sign anthony weiner or eliot spitzer? melissa: i like eliot spitzer better.
6:00 pm
@e have about five seconds. >> look at the pictures. >> i haven't. melissa: we will see you back your tomorrow. "the willis report" is next. gerri: hello, everybody, i am gerri willis. tonight on "the willis report." a top irs official takes the fifth and denied misleading congress. >> i have not done anything wrong. >gerri: watch out, your cell phones tracking your every move. and our series of special reports on your medical privacy. the big business trading your medical records. we are watching out for you tonight on "the willis report."